Consumer's Equilibrium — Utility Analysis Notes PDF — CBSE Class 11

Utility Analysis explains how a consumer allocates limited income to obtain maximum satisfaction. The notes cover total and marginal utility, the law of diminishing marginal utility and equilibrium conditions for one and two commodities.

Important topics covered

• Meaning and measurement of utility
• Total utility and marginal utility relationship
• Law of diminishing marginal utility
• Consumer equilibrium for one commodity
• Equilibrium for two commodities and equi-marginal utility

Exam-focused revision checklist

1. Interpret TU and MU schedules correctly.
2. State both equilibrium conditions, including the falling-MU condition.
3. Practise numerical questions using MUx/Px and MUy/Py.

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Frequently asked questions

Are these notes free?

Yes. The complete PDF is free to view online and download.

Who prepared these notes?

These CBSE Commerce revision notes are published by Smit Sir Commerce.